Where do they go for advice? Entrepreneurs’ advice-seeking behavior in Africa

Abstract

Using time-lagged primary data from entrepreneurs in two developing countries (Ghana, N = 261 and Ethiopia, N = 166), we examine how institutional voids drive entrepreneurs’ advice seeking behavior. Our findings show that higher levels of institutional voids in these developing countries are negatively related to internal advice-seeking but positively associated with external advice-seeking. The results also show that a heightened perception of environmental dynamism negatively moderates the relationship between institutional voids and internal advice-seeking but positively moderates the effect of institutional voids and external advice-seeking. Furthermore, we find that the negative relationship between institutional voids and internal advice-seeking is positive when entrepreneurs develop ties with politicians. The positive relationship between institutional voids and external advice-seeking is amplified when political network connections are stronger. Implications and direction for future research are discussed.

Keywords:

• Africa
• entrepreneurs
• environmental dynamism
• external advice seeking
• internal advice seeking

Ethical statement

All the informants gave informed consent. The authors declare that there is no conflict of interest.

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

This article was reviewed and processed during the tenure of the past Editor-in-Chief of International Studies of Management & Organization, Abraham Stefanidis, and past Associate Editor, Moshe Banai.

Additional information

Notes on contributors

Samuel Adomako

S amuel Adomako (PhD) is an Associate Professor of Strategy at the University of Birmingham, UK. Prior to joining the University of Birmingham, he held research and teaching positions at King Fahd University of Petroleum and Minerals, Saudi Arabia and the University of Bradford, UK. His research examines the nexus of strategy, entrepreneurship, and innovation. His research has appeared or forthcoming in leading journals including British Journal of Management, International Business Review, International Small Business Journal, Journal of Business Research, Journal of International Management, Business Strategy and the Environment among many others. He received his Ph.D. from Warwick Business School, University of Warwick, United Kingdom.

Joseph Amankwah-Amoah

Joseph Amankwah-Amoah (PhD) is Professor of International Business at the University of Kent, UK. Joseph is also a recipient of multiple research awards across the social science disciplines and has consistently published in many journals of international repute, including British Journal of Management, Industrial and Corporate Change, Business History, Long Range Planning, International Business Review, Technological Forecasting and Social Change and Journal of Business Research. In all, he has published over 100 articles.

Kwabena Kesse

Kwabena Kesse (PhD) is an Assistant Professor at the University of Colorado Denver Business School. Previously, he served on the faculty at the University of South Dakota. His research interests include the currency carry trade, entrepreneurial finance and emerging markets.

Ernestine Ning

Ernestine Ning (PhD) is a lecturer in Entrepreneurship at the Coventry University, UK. Her research interests are in social entrepreneurship and network relationships in emerging markets. Her research has appeared in leading international journals such as the Business Strategy and the Environment. She received her PhD from the University of Edinburgh, UK.